Nvidia did it again and announced another back-to-back quarterly financial result that blew everyone’s mind this week. The stock price surged another $100+ to cross $1k each, adding another $200+ billion to its market cap. At $2.6 Trillion today, it is now the 3rd largest company in the world, just behind Microsoft and Apple.
Its results are astounding for such a large company of this size, to achieve explosive financial numbers that are off the charts quarter on quarter compared to a year ago. Its gross margins (see table below) are an astonishing 78% as the demand for its H100 chips is so huge that the waiting list creates a big profit margin for each chip sold. Every big company that is serious about AI and Cloud computing will need its chips to power their data centres.
Can this trend continue? There is a high probability it will because Nvidia announced its newer and more powerful Grace Blackwell chips 2 months ago and they will only be shipped later this year. That will likely lead to another explosive quarterly result in Q3 and Q4 as orders will pile up in advance for the newer Blackwell chips.
I foresee that there will be more room to go for the stock into the second half of the year. The just-announced 10-for-1 stock split will make it more accessible for new investors to jump on the AI train. The CEO has indicated that there are more things in store to be announced. They are also partnering with PC companies like Dell to create AI-ready personal computers and laptops. The demand for Hopper and Blackwell chips can easily keep their production line occupied for at least a few quarters as the nearest competitor AMD is only trying to catch up to the mighty Nvidia…
===========================================================https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2025
- Record quarterly revenue of $26.0 billion, up 18% from Q4 and up 262% from a year ago
- Record quarterly Data Center revenue of $22.6 billion, up 23% from Q4 and up 427% from a year ago
- Ten-for-one forward stock split effective June 7, 2024
NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 28, 2024, of $26.0 billion, up 18% from the previous quarter and up 262% from a year ago.
For the quarter, GAAP earnings per diluted share was $5.98, up 21% from the previous quarter and up 629% from a year ago. Non-GAAP earnings per diluted share was $6.12, up 19% from the previous quarter and up 461% from a year ago.
“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centres to accelerated computing and build a new type of data centre — AI factories — to produce a new commodity: artificial intelligence,” said Jensen Huang, founder and CEO of NVIDIA. “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient while expanding revenue opportunities.
“Our data centre growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform. Beyond cloud service providers, generative AI has expanded to consumer internet companies, and enterprise, sovereign AI, automotive and healthcare customers, creating multiple multibillion-dollar vertical markets.
“We are poised for our next wave of growth. The Blackwell platform is in full production and forms the foundation for trillion-parameter-scale generative AI. Spectrum-X opens a brand-new market for us to bring large-scale AI to Ethernet-only data centres. And NVIDIA NIM is our new software offering that delivers enterprise-grade, optimized generative AI to run on CUDA everywhere — from the cloud to on-prem data centres and RTX AI PCs — through our expansive network of ecosystem partners.”
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